If A Non-Resident Want To Sell His Property In India To A Indian Resident Person Than The Person Who Is Buying The Property Have To Cut Tds. If Yes How Much Percent And What Is The Section For This.
Reply
As per section 195 of Income Tax Act, 1961 any person responsible for paying to a non-resident, any interest or any sum chargeable under the provisions of this Act not being income chargeable under the head "Salaries" shall at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by the issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon at the rates in force.
Therefore if Indian resident is responsible for making payment to the nonresident on account of acquisition of property (long term asset) situated in India, he shall deduct TDS at the rate of 20.8% (20% rate of long capital gain+ 4% rate of health and education cess) at the time of making payment. |